Trinity results cheer market
Nov 16 2007 by Peter McCusker, The Journal
NEWSPAPER and online publisher Trinity Mirror sparked a share price rally yesterday after reporting growth in advertising revenues for the current year.
The group, which produces 200 regional titles including The Journal, the Evening Chronicle, the Middlesbrough Evening Gazette and national titles including the Daily Mirror, said revenues in the four months to the end of October rose 2.7% on a year earlier, resulting in an increase of 0.1% for the year to date.
The update lifted Trinity Mirror’s shares by more than 4%, offsetting recent weakness caused by worries about tougher trading conditions.
Finance director Vijay Vaghela told a conference in Barcelona that the gradual improvement in advertising market conditions had been maintained.
He said: “Whilst the advertising environment remains volatile month on month, we are encouraged by the trends that are emerging. The board is confident that our 2007 performance will be in line with expectations.”
The company said advertising revenues for its regionals division remained flat for the 10 months to October, compared with a decline of 1% for the first half.
The nationals division increased by 0.9% for the 10 months, which compares to a decline of 2.3% for the first half. Group circulation revenues increased by 0.8%, with the improvement driven by a 0.9% rise for the nationals.
Trinity Mirror shares stood at 557p in mid-July, but have been hit by a near 30% decline over the past three months, in line with other firms. The stock was 4% higher at 356.25p yesterday.
Numis Securities said the trading update should come as a relief to investors.
Trinity Mirror recently raised a total of £263m from the sale of the Racing Post and seven businesses in London and the South-East. It is now focused on national and digital assets and its papers in Scotland, the north of England, Wales and the Midlands.
